Real wages in Singapore up 0.4% in 2023

This is similar to the increase in 2022.

Real wages for full-time resident employees in Singapore saw a modest increase of 0.4% in 2023 amidst economic shifts, maintaining levels similar to 2022, the Ministry of Manpower (MOM) announced.

In 2023, nominal total wages for full-time resident employees, ipencluding employer CPF contributions, continued to increase, albeit at a slower pace compared to the previous year. Growth decelerated from 6.5% in 2022 to 5.2% in 2023, maintaining levels above typical non-recessionary periods.

Despite economic challenges, a majority of establishments remained profitable in 2023, with 82.1% reporting positive financial outcomes. However, a larger proportion noted decreased profitability compared to 2022, influencing the frequency of wage increases.

In 2023, 65.6% of establishments provided wage hikes, down from 72.2% in 2022, whiste 6.5% reduced wages, and 27.9% maintained stability in wage levels.

Across industries, wage growth varied, with increases in administrative and support services, driven by the progressive wage model (PWM), recording 7.1% in 2023 compared to 5.2% in 2022. Wage adjustments for rank-and-file (4.8%), junior management (6.3%), and senior management (4.6%) employees reflected a moderated growth trend compared to the previous year.

Despite widespread implementation of some form of flexible wage system in 2023 amongst establishments (80.4%), full adoption incorporating both monthly and annual variable components remained low at 10.3%, similar to levels observed in 2022.

Looking ahead, wage growth is anticipated to persist, particularly benefiting lower-income employees, with the local qualifying salary set to increase from $1,400 to $1,600 for full-time residents in 2024.

Industries like food & beverage services, retail trade, and those under the PWM are also expected to sustain steady wage growth, supporting economic resilience in the coming years.

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